The Sunday Times wrote that Alpha Condé has signed an agreement with a certain Walter Hennig, a wealthy white businessman from South Africa is among other things specializes in diamond mining in Angola and Congo.
Mining is the economic powerhouse of Guinea with more than 70 percent of state revenues. In September, Guinea adopted a new mining code. A committee was also established to "review mining contracts" signed by the previous regimes and that the new government elected in 2010 estimates not be in favor of Guinea. Mining companies have criticized the new code and argued that several clauses will discourage mining investment in Guinea.
The Sunday Times wrote that he had access to documents which indicate that already in April last year - or months before the Code was adopted by the National Council of Transition the body that takes the place of the Parliament- Mines Minister Mohamed Lamine Fofana has agreed a loan of $ 25 million with Palladino Capital, a company controlled by Hennig and registered in the British Virgin Islands, a tax haven known. Hennig created in 2003 the firm Palladino Holdings as a vehicle for "mining, energy and other assets in Africa."
The loan of $ 25 million was never publicly revealed Guineans, initialed in the margin or in the national budget although the President Alpha Conde has said that "contracts which commit Guinea will be published on the Internet." Sources told the Guinéenews © Minister of Mines executed an order of Alpha Condé, whose son Mohamed Conde would deal with Paladino, Mvellapenda (group Tokyo Sexwale) and Och Ziff, an investment fund. The agreement was initialed by the Guinean side Mohamed Fofana and Kerfalla Yansané, the Minister of Finance and the South African side by a certain Samuel Mebiane, listed as "agent" for Palladino.
One of the clauses is controversial is the provision which states that if the Guinean government can not repay the loan, the company will convert the debt to a 30 percent in the operations of the Guinean national mining company SOGUIPAMI that was created by presidential decree adopted by the NTC in August 2011. However, under the tutelage of the IMF is, because research HIPC expenditures Guinea are controlled by the Bretton Woods institutions and it is very probable that the repayment of $ 25 million to a billionaire may be seen from askance by the mandarins of Washington announce the fight against poverty in Guinea and most want to know how the 25 million was spent.
Potentially - observers note - 25 million loan that will bring billions of dollars to Henning for participation in the project Guinean Simandou iron mine only - owned by Rio Tinto, Chinalco, and Vale Beny Steinmetz - is at least 10 billion. Guinea also options for investments in mining projects with mining giants such as BHP Billiton, Arcelor Mittal and Rusal.
But more importantly, note sources contacted by Guinéenews © This type of agreement is in flagrant violation of the Mining Code, which stipulates in Article 150 that "The State reserves the right to sell all or part of its interest in cash, without pre-emptive rights of the other shareholders of the mining title holder, through a bidding process open and transparent. " In addition it was found that the president's son would have a direct or indirect, that would be another violation of the Guinean Constitution, which stipulates in Article 39 that: "During his tenure, the President may, by itself, for a member of his family and even others, buy or lease a property in the area belongs to the State, without the consent of the Constitutional Court under the conditions set by law. '
The agreement was signed with Palladino less than a month after qu'Hennig has signed a Memorandum of Understanding under which another vehicle, Flores Bell, would become a "partner" with the government in the mining industry.
The British newspaper concludes that this revelation may become an embarrassment to Tony Blair, former British Prime Minister who is supposed to advise Conde for better governance through its NGO "Africa Governance Initiative."]
Source: Guinéenews
also see Commission for Africa
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